§ 877.5.Sliding Scale Recovery Agreement Between One Or More Tortfeasors
Title 11. Contribution Among Joint Judgment Debtors · Chapter 1. Releases From and Contribution Among Joint Tortfeasors · Last amended 1990 · Last verified July 28, 2026
In one sentenceSection 877.5 regulates sliding scale recovery agreements, under which some but not all defendant tortfeasors limit their exposure based on what the plaintiff recovers from the remaining defendants, by requiring disclosure to the court, possible disclosure to the jury, and advance notice to nonsignatory defendants.
(a)Where an agreement or covenant is made which provides for a sliding scale recovery agreement between one or more, but not all, alleged defendant tortfeasors and the plaintiff or plaintiffs:
(1)The parties entering into any such agreement or covenant shall promptly inform the court in which the action is pending of the existence of the agreement or covenant and its terms and provisions.
(2)If the action is tried before a jury, and a defendant party to the agreement is called as a witness at trial, the court shall, upon motion of a party, disclose to the jury the existence and content of the agreement or covenant, unless the court finds that this disclosure will create substantial danger of undue prejudice, of confusing the issues, or of misleading the jury. The jury disclosure herein required shall be no more than necessary to inform the jury of the possibility that the agreement may bias the testimony of the witness.
(b)As used in this section, a "sliding scale recovery agreement" means an agreement or covenant between a plaintiff or plaintiffs and one or more, but not all, alleged tortfeasor defendants, which limits the liability of the agreeing tortfeasor defendants to an amount which is dependent upon the amount of recovery which the plaintiff is able to recover from the nonagreeing defendant or defendants. This includes, but is not limited to, agreements within the scope of Section 877, and agreements in the form of a loan from the agreeing tortfeasor defendant or defendants to the plaintiff or plaintiffs which is repayable in whole or in part from the recovery against the nonagreeing tortfeasor defendant or defendants.
(c)No sliding scale recovery agreement is effective unless, at least 72 hours prior to entering into the agreement, a notice of intent to enter into an agreement has been served on all nonsignatory alleged defendant tortfeasors. However, upon a showing of good cause, the court or a judge thereof may allow a shorter time. The failure to comply with the notice requirements of this subdivision shall not constitute good cause to delay commencement of trial.
Plain-English Summary
A sliding scale recovery agreement — sometimes called a Mary Carter-type agreement — lets one or more, but not all, defendant tortfeasors cap their own liability at an amount that depends on how much the plaintiff ultimately collects from the defendants who didn't sign on. Subdivision (b) defines the term broadly enough to reach not just agreements shaped like a § 877 release, but also loan arrangements where the agreeing defendant lends the plaintiff money repayable out of whatever is recovered from the nonagreeing defendants.
Because these agreements can quietly realign a defendant's incentives at trial — an agreeing defendant might now want the plaintiff to win big against everyone else — § 877.5 builds in transparency. Subdivision (a)(1) requires the parties to promptly tell the court such an agreement exists and what it says. Subdivision (a)(2) goes further at a jury trial: if an agreeing defendant testifies, the court must disclose the agreement's existence and content to the jury on a party's motion, unless disclosure would create a substantial danger of undue prejudice, confuse the issues, or mislead the jury — and even then, only enough to let the jury weigh whether the agreement might bias that witness's testimony.
Subdivision (c) protects nonsignatory defendants from being blindsided: no sliding scale agreement takes effect unless the parties served a notice of intent to enter it at least 72 hours beforehand, though a court can shorten that window for good cause. Failing to give the notice, however, is never itself good cause to delay the trial.
Frequently Asked Questions
What is a sliding scale recovery agreement?
An agreement between the plaintiff and some, but not all, defendant tortfeasors that limits the agreeing defendants' liability based on how much the plaintiff recovers from the nonagreeing defendants, including loan-style arrangements repayable from that recovery.
Does the court have to be told about a sliding scale agreement?
Yes. Subdivision (a)(1) requires the parties to promptly inform the court of the agreement's existence, terms, and provisions.
Will the jury learn about the agreement?
If an agreeing defendant testifies at a jury trial, the court must disclose the agreement's existence and content on a party's motion, unless the court finds that disclosure would cause substantial danger of undue prejudice, confusion, or misleading the jury.
How much advance notice must nonsignatory defendants get before the agreement takes effect?
At least 72 hours, under subdivision (c), though a court may shorten that period for good cause — but the failure to give notice doesn't itself count as good cause to delay trial.
Amendment History
Amended by Stats. 1990, Ch. 17, Sec. 1.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as:sliding scale recovery agreement californiamary carter agreement california